The oil price rose by around 9 percent on Monday after two oil installations in Saudi Arabia were hit by a drone attack on Saturday. Will we soon feel the effects of the attack at the pump?
Yes, concludes Paul van Selms of consumer advice center United Consumers. As a result of the attack on the oil fields, around 5 percent of global oil production comes to a standstill, which will be passed on in gas prices.
Van Selms expects motorists to pay between 1 and 2 cents more for gasoline. "Normally you see price increases of between 0 and 1 cent, but that may be a bit more intense now. The most severe price increase I have experienced in the last twenty years is an increase of 2 cents."
A petrol price increase of 1.5 cents would be a percentage increase of almost 1 percent, a lot lower than the rise in oil prices. "It is not the case that if oil prices rise by 10 percent, gas prices rise by 10 percent," explains Van Selms.
The prices do not increase proportionally with each other, because the oil price is only part of the gas price. In the Netherlands, VAT and excise duties make up around 62 percent of the gas price. The oil price is included in production, approximately 28 percent of the pump price. In addition, oil buyers can simply wait until the oil price is slightly lower. "So you don't have to implement the price increase overnight," says Van Selms.
See also: Oil prices rise sharply after attack on Saudi oil fields
Price increases are only implemented after Monday
If you are short of cash and are looking forward to the higher pump prices, it is best to refuel quickly on Monday.
The prices for Saturday, Sunday and Monday are set on Friday, so motorists will not yet feel the effects of the drone attack on Monday. The prices for Tuesday are calculated on Monday, so the first price increases will probably only be implemented on Tuesday.